Can Dropbox Bounce Back in 2020?
Cloud computing has been a winning theme for many investors, but the same cannot be said for business models that lean on the cloud to provide data storage solutions for consumers and other enterprises. It's a cutthroat niche, and Dropbox (NASDAQ: DBX), which competes in it, is currently a broken IPO after going public at $21 in 2018.
In a year during which stocks generally rose, Dropbox has been going the other way. Shares of the out-of-favor cloud storage giant peaked in the low $40s a few months after last year's debut, but now are trading in the mid-teens and hit another all-time low on Thursday. It has been a rough ride for shareholders, but the current situation could be a buying opportunity.
Image source: Dropbox.
Source Fool.com
